Isuzu Motors is to acquire GM's stake in 'General Motors East Africa' (GMEA) as part of a strategy to expand in the region.

Isuzu will acquire 57.7% of the GM-owned GMEA stocks to become a subsidiary of Isuzu Motors. As the result, GMEA's company name will be changed in April to "ISUZU EAST AFRICA".

Isuzu said it is making the investment with the intention of expanding its commercial vehicle production and sales in Eastern Africa.

Since its establishment in 1975, GMEA has been engaged in CKD assembly and sales of Isuzu-badged light and mid-duty trucks and buses, and import and sales of Isuzu pickup trucks and Chevrolet passenger cars. GMEA has maintained the top share in Kenya's commercial vehicle market for five years since 2012, Isuzu said.

Isuzu says it will make this investment aiming at further quality improvement, vehicle sales expansion and aftersales service enhancement. For these purposes, it said Isuzu will provide the company in East Africa with 'as much assistance as possible in the fields of personnel training, manufacturing technique and enhancement of Aftersales business'.

Last year, the Nairobi based unit delivered about 3,300 locally manufactured vehicles and revenues totaled around 20 billion yen. The company's main markets are in Kenya, Uganda and Tanzania.

Industry analysts note that East Africa has low levels of motorisation and offers good long-term growth prospects for vehicle sales, especially utility vehicles and low-cost cars.